If you think equity / debt crowdfunding is just for early stage companies. Think again.
The UK has always been a trailblazer in the sector of internet finance. The rest of the world gets to watch and cross our fingers that our own ecosystem evolves in a similar fashion. While many industry followers view investment crowdfunding as just an important vehicle for startups, it has the potential to be much more. In the UK, we have already seen multiple, more established companies leverage online platforms to raise capital. Recently in the UK, courtesy of crowdfunding platform Karadoo, Master Paintmakers, a 124-year-old paint company has reportedly listed a mini-bond offer to raise £5 million (over $7.1 million).
According to a report in This is Money, investors in the debt security will receive 6% annual interest during a five-year term. The investment will be paired with a 50% discount on all paints.
Master Paintmakers has partnered with fabled tastemaker and designer Sir Terence Conran – a truly global brand. Master Paintmakers is the producer of Conran’s paint collection. The capital injection will be used to expand internationally.
This is a good example of old meets new. When Master Paintmakers was founded in Birmingham back in 1892 they most certainly raised funding in a rather different manner.
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